Operator Journey

How African fleet operators access Fleets financing — from eligibility to drawdown to final repayment.

Who Can Borrow?

Fleets targets established corporate fleet operators in Africa — companies with a documented history of operating transportation assets and generating consistent cashflows.

Ideal applicants:

• Registered Nigerian corporate entities (other markets planned)
• Operate a fleet of commercial vehicles (buses, vans, coaches)
• Have a track record of at least 12 months of operating revenue
• Seeking to acquire new vehicles or refinance existing acquisition costs
• Willing to grant a vehicle lien on financed assets

All facilities are disbursed in USD via the licensed Nigerian SPV. Operators manage their repayments through the SPV, which handles NGN/USD conversion on the operator’s behalf.

Loan Parameters

Parameter	Specification
Facility size	Typically $50,000+ per facility
LTV	60–80% — operator contributes 20–40% equity
APR	15–25%, fixed at drawdown
Term	12, 24, or 36 months
Repayment	Fully amortising — equal monthly payments
Collateral	Vehicle lien held by SPV
Currency	USD (disbursement and repayment)
Grace period	30 days after missed repayment

The Operator Journey

1. Initial Application

   Submit an application through the Fleets platform or directly via the SPV. Provide:

   • Company registration documents
   • 12 months of bank statements
   • Fleet asset schedule (current vehicles, usage, revenue)
   • Vehicle(s) to be financed (make, model, year, estimated value)
2. SPV Due Diligence

   The licensed Nigerian SPV conducts credit assessment, including:

   • Fleet cashflow analysis
   • Vehicle lien registration feasibility
   • Operator identity verification
   • Business operations review
3. Offer and Terms

   Eligible operators receive a facility offer specifying:

   • Principal amount (60–80% of vehicle purchase price)
   • Fixed APR for the facility term
   • Monthly payment amount (PMT)
   • Repayment schedule starting from disbursement date
4. Protocol Origination Check

   Before capital is disbursed, the smart contract verifies:

   • Proposed facility does not breach the FFC coverage ratio (φ ≥ 80%)
   • Liquidity Reserve is above 20% of pool NAV
   • Protocol is not paused

   If all checks pass, the loan account is created on-chain.

5. Disbursement

   USDC is transferred from the protocol pool to the SPV. The SPV converts to NGN and purchases the vehicle(s) alongside the operator’s equity contribution. Vehicle liens are registered.

   The disbursement_ts timestamp is recorded on-chain — all subsequent payment dates derive from this.

6. Monthly Repayments

   Each month, the operator repays a fixed amount to the SPV in NGN. The SPV converts to USDC and credits the protocol pool. The full payment enters the pool and is accounted for as:

   • Interest portion: flows through the yield waterfall (10% treasury, 5% Insurance Fund, 85% to FYC/FFC)
   • Principal portion: reduces the outstanding loan balance
7. Loan Closure

   On the final payment, the loan balance reaches zero, the facility status updates to Repaid, and the vehicle lien is released. The operator owns the vehicles outright.

Amortisation — What Operators Pay

Every Fleets loan uses standard equal-payment amortisation. This means your monthly payment is fixed for the entire loan term — no balloon payments, no variable rates.

Example: $100,000 vehicle acquisition at 25% APR over 36 months

Monthly payment = PMT = $100,000 × (0.25/12) / (1 − (1 + 0.25/12)^−36)
               = $3,974.98 / month

Month	Payment	Interest	Principal	Balance
1	$3,975	$2,083	$1,892	$98,108
12	$3,975	$1,756	$2,219	$82,847
24	$3,975	$1,181	$2,794	$54,924
36	$3,975	$81	$3,894	$0

Your total cost of borrowing over 36 months is approximately $43,099 in interest on a $100,000 loan.

What Happens if You Miss a Payment

If a payment is not received by the due date, the grace period begins immediately:

1. Day 2: Penalty interest begins accruing at APR × 1.25
2. Days 2–30: SPV contacts operator to arrange remedy. Operator must pay overdue amount plus accrued penalty interest.
3. Day 30, 23:59: If not resolved, automatic default is declared. SPV executes vehicle lien — assets are seized and sold at auction.

In cases of mismanagement, the operator is expected to repay the outstanding principal. The protocol enforces a 30-day grace period at the contract level to protect depositor capital.

SPV and Legal Structure

Fleets operates through a licensed Nigerian Special Purpose Vehicle (SPV) that:

• Holds all vehicle liens on behalf of the protocol
• Manages NGN/USD conversion for disbursements and repayments
• Executes enforcement actions (vehicle seizure, auction) on default
• Provides regulatory cover for USD lending activities in Nigeria

The SPV structure means operators transact with a licensed Nigerian entity — not directly with a DeFi protocol. This ensures compliance with local financial regulations.

To start an application, reach out at [e-mail] or visit usefleet.xyz.